The U.S. Secretary of Energy attributed the record-high diesel prices to damage to Russian refineries
US Energy Secretary Chris Wright stated that serious damage to Russian oil refineries was one of the factors that caused a global shortage of refining capacity and pushed diesel fuel prices in the US to record levels.
Wright made the statement on September 6 during an appearance on CBS News's Face the Nation program.
Host Margaret Brennan noted that the price of diesel, which heavily affects US freight transportation and railroads, reached a record $5.89 per gallon during the week, and asked the secretary whether the Donald Trump administration is considering banning its export.
Wright replied that the diesel fuel situation remains difficult due to significant damage to Russian refineries. According to him, Russia was previously a notable diesel exporter, but now it virtually does not supply it abroad and at the same time has become a significant importer of gasoline.
The secretary stressed that the current rise in gasoline and diesel prices is primarily related to a shortage of global refining capacity, so prices for finished fuel increased more than crude oil quotes.
American Diesel Set a Historic Record
According to AAA data cited by The Wall Street Journal and Fox Business, on September 4 the average retail price of diesel in the US reached approximately $5.85 per gallon. This exceeded the previous historic high of $5.8159, set in June 2022.
A year earlier, diesel cost an average of about $3.71 per gallon. Thus, fuel prices have risen by more than $2 per gallon over the year.
The Wall Street Journal notes that several factors are pressuring the American market simultaneously: disruptions in energy supplies from the Middle East, reduced operations at Russian refineries, and decreased availability of Russian diesel on the global market. Consequently, international buyers are competing more actively for American fuel.
US Directly Mentioned Ukrainian Strikes on Refineries
In his response to CBS, Chris Wright did not specify what caused the damage to Russian refineries. However, later in the same Face the Nation episode, Sunoco CEO Ray Washburne directly linked the sharp reduction in Russian refining to Ukrainian attacks.
According to him, Russian refineries are currently operating at about 40% capacity, and oil product exports have virtually stopped due to Ukrainian strikes on refining infrastructure. He believes that returning these capacities to the market, along with a possible resolution of the conflict with Iran, could sharply increase energy supply.
The Wall Street Journal also cites Ukrainian attacks on Russian refineries as one of the factors reducing fuel production and exports from Russia.
Washington Has No Plans Yet to Restrict Exports
Responding to a question about a possible ban on American diesel exports, Wright said the administration is considering various options to lower prices for consumers, but is currently focusing on increasing production.
He said recent regulatory changes should allow American refineries to produce more gasoline and diesel using existing capacity. Meanwhile, the end of the summer driving season should reduce demand, which could contribute to lower prices in the coming weeks.
The high cost of diesel is particularly sensitive for the American economy because the fuel is used in freight transportation, agriculture, construction, and industry. Prolonged record prices could increase business transportation costs and intensify inflationary pressure.
Based on materials from: CBS News, The Wall Street Journal, Fox Business
